Is the Centre's LPG subsidy linked to election years!
Subsidy fluctuated between Rs 1811 cr. To Rs 41565 cr.
The Prices of Domestic LPG cylinders almost doubled in three years even as the subsidy to consumers fell to as low as Rs 1811 crores in 2021-22. The price of Domestic LPG as on July 1, 2020 was Rs 594 which shot up to Rs 1103 on July 1, 2023 i.e. within a span of three years.
The subsidy on LPG has been seeing wide variations after setting a record of Rs 41565 crores in 2012-13 during the UPA era to Rs 3971 crores in 2014-15 under the NDA rule. When the elections drew near, the LPG subsidy bill again rose to Rs 37209 crores in 2018-19 only to see a major fall next year to Rs 24172 crores and further dwindled to Rs 11896 crores in 2020-21.
Strangely, these subsidies included the Pradhan Mantri Garib Kalyan package as well. With the elections drawing near in 2022-23, the subsidy bill rose to Rs 6965 crores and additional Rs 22000 crores to oil marketing companies as one-time compensation. According to official figures made available by the Petroleum and Natural Gas ministry, the government provides subsidies as it deems fit while the oil marketing companies are free to charge prices for commercial consumption.
However, there was no explanation as to why there is wide variation in the amount of domestic LPG subsidiaries. A senior official said the dwindling amount of subsidy is a clear indication that the poor are not buying LPG cylinders due to high prices. With the elections in 2023-2024 drawing to a close, the amount of domestic LPG is being enhanced. The government had initiated a targeted subsidy of Rs 200 per 14.2 kg cylinder under Pradhanmantri Ujjawala Yogna (PMUY) w.e.f. from May 21, 2022 for up to 12 cylinders for 2022-23 and 2023-24.
